Everything that we've been talking about applies also, even if you're house hacking or investing in your home town. It's really important to understand the levers that you can pull when you invest. And i think that there are things that even more season investors sometimes forget about. For example, last year i sold a property, and i actually tollly forgot about principal paid terms of being one of my, like, make my bank account happy kind of levers.
#373: How do people make money in real estate?
Many focus on rental income, but this is only one of five ways that properties create wealth.
We explain five surprising ways that real estate builds your balance sheet: cash flow, appreciation (market-based and forced), tax benefits, principal paydown, and instant equity at closing.
Why does this matter for long-distance investors?
If you’re investing out-of-state, you’ll need to choose a city or town. How do you decide? First, think about how you want to bias your returns. Do you want to optimize for cash flow? More appreciation potential? Identifying this will help you align your city/town selection with your financial goals.
If you’ve been thinking about investing in real estate – especially if you might invest long-distance – you’ll love this episode.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode373
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